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Royal Danish Embassy-Clean Development Mechanism Project

After ratifying the Kyoto Protocol and publishing the new Danish Climate Strategy in 2002, Denmark committing itself to reduce greenhouse gas emissions by 21 percent which equals to 15 million tons of carbon equivalent in the first commitment period (2008 – 2012). About DKK 1 billion (about USD 160 million) has been allocated by the Danish Government for Joint Implementation (JI) and Clean Development Mechanism (CDM) project in 2004 – 2008.

After ratifying the Kyoto Protocol and publishing the new Danish Climate Strategy in 2002, Denmark committing itself to reduce greenhouse gas emissions by 21 percent which equals to 15 million tons of carbon equivalent in the first commitment period (2008 – 2012). About DKK 1 billion (about USD 160 million) has been allocated by the Danish Government for Joint Implementation (JI) and Clean Development Mechanism (CDM) project in 2004 – 2008.

Following successful cooperation with Malaysia, South Africa, Thailand and China, the Royal Danish Embassy has started a project to collaborate in CDM project development in Indonesia. A Memorandum of Understanding between the two countries was signed on July 27, 2005 by Minister of Environment H.E. Rachmat Witoelar and former Ambassador of Denmark in Indonesia, H.E. Ambassador Geert Andersen.

Pelangi helps to assist the Royal Danish Embassy (RDE) in Jakarta to manage and implement this initiative together with ECON Analysis, an international consultant from Denmark. A CDM project Development Facility amounting about 5 million DKK, or about US$ 600,000, have been allocated to assist project developers to develop their project from merely good ideas to full documentation of the projects. Denmark is also committed to purchase as much CERs resulting from this Facility as possible.

Pelangi and ECON has conducted several outreach activities in landfill, palm oil and cement sectors during the first phase from May to October 2005 and will continue with the second phase of outreach activities for the following sectors: oil and gas, steel, pulp and paper, power and coal mines. By October 14, 2005, Pelangi has receive five Project Idea Notes (PINs) from interested companies, included two projects from palm oil sector, two landfill gas projects and one industrial biomass project. There are also several other projects in pipeline, namely three biogas projects, a number of projects in cement industry and forestry. Pelangi and ECON will continue with the first screening process and will then undertake a due diligence of the projects to prepare a recommendation to the RDE on which projects to sign a Letter of Intent.

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